Feds deny grant for Kalispell industrial park

The city of Kalispell recently was notified it was denied a federal Department of Transportation grant that had been hoped for as a funding source for infrastructure development at an industrial park off Whitefish Stage Road.

A delegation of nine people representing the city and the Flathead County Economic Development Authority traveled to Washington, D.C., in April as part of the effort to secure a $9.9 million Transportation Investment Generating Economic Recovery (TIGER) grant.

“It’s one of those things where you have a competitive process. You put together as effective a package as you can,” City Manager Doug Russell said.

The Fort Peck Tribe was the only entity in Montana to receive TIGER grant funding this year, Russell said.

The city had intended use the grant to design and develop infrastructure at a 40-acre industrial park owned by the Flathead County Economic Development Authority. The park, which is on land that used be occupied by McElroy & Wilkin, was annexed by the city earlier this year.

The park is considered to be a key component of implementing the Kalispell Core Area Plan, which opens up central Kalispell to the possibility of new development.

The plan involves removing BNSF railroad tracks between Meridian Road and the Woodland Park area, clearing the way for an east-west trail system and “green park” area at the city’s center. That would also allow for more parking and sidewalks, as well as north-south street extensions, where they are needed, to complete streets that are currently blocked by the rail tracks.

Before the city can pursue that effort, however, it must facilitate the relocation of two businesses that are currently served by rail in the core area, Northwest Drywall and Cenex Harvest States, to the industrial park, which will be served by rail.

“Without getting the infrastructure in at the industrial park, you can’t pull out the tracks,” Russell said.

The city planned to use West Side Tax Increment District funding for the core area project, using that as a “match” for the city to qualify for TIGER funding.

Russell said the city and the economic development authority will continue to look at alternative funding approaches for the industrial park and the core area project.